Circuit City wants to sell you stuff, then hook it all up
Circuit City Stores, Inc. (NYSE: CC) is striving to do what it can to lure customers back into its stores in the face of rapidly declining sales and the public relations backlash of firing 3,400 workers so that they could be replaced with cheaper workers. Well, the company is still not sure it is on the right path, and CEO Phil Schoonover must be one of the sweatiest leaders in the retail world right now. If I owned CC shares, vocal disapproval would be an inadequate way to describe the position I would take. How about you?
What will Circuit City do to reinvigorate itself and its sales? A piece of that strategy seems to be enhancing its Firedog services (that name is, well, lame); the retailer is moving fast and furious to make sure all customers know about its PC services, home theater installation services and more mobile installation services offered through Firedog.com. As the focus moves away from retail transactions and into more of a services approach, this must mean that the retail electronics field is lacking in margin and is roughly commoditized. Yep, I can see that. Competitor Best Buy Inc. (NYSE: BBY) saw this quite a while ago.
Circuit City's Schoonover said last week that the retailer must move beyond selling TVs and move into the arena of selling multiple pieces of entertainment gear together as some kind of integrated solution for the consumer. Sounds like a plan: get customers to buy multiple pieces of equipment like DVD players, home theater receivers and game consoles and then sell them a services package from Firedog to get it all connected and working together since the manufacturers make it impossible to do that for yourself. Do I hear conspiracy here? Just kidding . . . maybe.
What will Circuit City do to reinvigorate itself and its sales? A piece of that strategy seems to be enhancing its Firedog services (that name is, well, lame); the retailer is moving fast and furious to make sure all customers know about its PC services, home theater installation services and more mobile installation services offered through Firedog.com. As the focus moves away from retail transactions and into more of a services approach, this must mean that the retail electronics field is lacking in margin and is roughly commoditized. Yep, I can see that. Competitor Best Buy Inc. (NYSE: BBY) saw this quite a while ago.
Circuit City's Schoonover said last week that the retailer must move beyond selling TVs and move into the arena of selling multiple pieces of entertainment gear together as some kind of integrated solution for the consumer. Sounds like a plan: get customers to buy multiple pieces of equipment like DVD players, home theater receivers and game consoles and then sell them a services package from Firedog to get it all connected and working together since the manufacturers make it impossible to do that for yourself. Do I hear conspiracy here? Just kidding . . . maybe.











Reader Comments (Page 1 of 1)
7-05-2007 @ 2:04PM
George Avila said...
I was a loyal customer to Circuit City untill I had a bad expierience with a sale person and also her Supervisor. I had reported this via e-mail and have had no replay. I have not been back to Circuit City since that time. Could this be one of the reasons for your declaining sales?
7-05-2007 @ 1:57PM
LLEWELLYS said...
I guess you never heard of BBY Geek Squad. I guess they have the same packaging plan.
7-05-2007 @ 2:44PM
Mike said...
Yep. Just like the other comments, I had a bad experience at Circuit City and haven't been back since -at least to buy anything. I may stroll in and do a quality check on some equipment before buying from say, Amazon. And for the "services" they offer, Save Your Money! You likely have friends who are far more savvy with electronics and computers than the so-called Technicians (hobbyists) they send to your home. We all understand that companies need new twists and gimmicks to stay one step ahead of the consumer, but competition is fierce and only the strong...
7-05-2007 @ 3:02PM
Lisa said...
Why would I want to add installation services to my purchase when half the fun is figuring out all the cables, crawling under things, and swearing a lot? Honest. I like the challenge of setting up my own equipment. I think it's fun, and the swearing is fun, too.
7-05-2007 @ 4:50PM
CP said...
I am not sure who I like better. CC or BBY..But this I do know...As a consumer no matter what store I go into CUSTOMER SERVICES leaves MUCH to be desired. But, myself and my children are in that field, and I think the people that give you GREAT customer service are the ones who have been around it all there lives. The employees that are hired just to fill space are the ones these companies have problems with. They need to send there family members in to check out whats going on in there stores, If customer service is bad it will show no matter who the person is buying. They both need to get a handle on Customer Services..and then see whos sales will win out.......
7-06-2007 @ 6:00PM
Cary said...
You know, I was one of the 3,400 fired in March. So I guess you could say I have an inside perspective on things at the "City." Everything varies from store to store. The primary problem that I find at the store level is a lack of training on products. It was absolutely rediculous. In my store [Laguna Hills, Ca], paticularly in my department (Televisions/Home Entertainment), the people who were fired made up for well over 80% of the gross sales of product and services. The store prior to March 28th was 2nd in the company for profitability 4th in the company for services. Pretty impressive considering the some 611 or so stores. For the month of April, the store ranked 8th from the bottom. Right now, the store is 14th from the bottom. If the company would adequately train all associates, I have absolutely no doubt Circuit would make a strong comeback. This coming from a former Supervisor at 2 local Best Buy stores. Best buy has 2 fundamental issues; #1 EXPENSES. If Best Buy cut spending by even 15%, they would have stepped on Circuit City's neck years ago. The 2nd issue is the one that you, the consumer feel. There is a seemingly terminal lack of connection between management and employees. The management at Best Buy is taught that they should avoid interacting with the sales staff as much as possible. The general believe is that employees will be forced to swim rather than sink. Ultimately, this practice leads to higher turnover rates with employees who feel abandoned by management. The management refers to this as weeding. Leaving the consumer with the same problem plaguing Circuit right now, people who don't know what they are doing. I'm sure that anyone who reads this has gone in to one of these stores, asked a questiion, and got a response along the lines of, "You know, I'm not sure." or "I don't know." But, when all is said and done, Best Buy is superior in 2 primary ways; First, it is bigger box that looks more clean and less cluttered, second, despite the higher prices on most items, the lights are bright and draw the consumers like a bug light on the back porch of a house in the Louisiana Bayou. When it comes down to where I shop, I base my decision strictly on price. My recommendation, do you own research, 98% of employees at either establishment really don't know the answer to what you would ask.
7-08-2007 @ 5:23PM
marcia b said...
Circuit City was once my favorite store, but after being burnt by their poor/no service first on a computer, then on a tv guess I learned my lesson. You can buy the same products anywhere....it is customer service that people are looking for....On both instances my issues were corrected by outside sources. So I will never again make a purchase with CC.
7-10-2007 @ 8:12AM
KAE said...
I visited CC a couple of years ago to look at new computers. As soon as I mentioned needing a computer, the sales associate handed me an extended warranty brochure and started pitching a service plan.....BEFORE I HAD EVEN LOOKED AT COMPUTERS. Having worked in retail, I know the pressure to sell these plans but let me pick out my product first. I told him I wasn't interested in the plan and to find me another associate as I was not interested in working with someone trying to hard sell service plans.
7-14-2007 @ 6:56PM
Aaron Chase said...
2. I was a loyal customer to Circuit City untill I had a bad expierience with a sale person and also her Supervisor. I had reported this via e-mail and have had no replay. I have not been back to Circuit City since that time. Could this be one of the reasons for your declaining sales?
Posted at 2:04PM on Jul 5th 2007 by George Avila
Well George, I will see you one better. I purchased a Flat TV , installation bracket, warranty etc.
I am to angry to post the level or lack of service or responsiveness by the staff at the Smith haven mall Circuit City. I can't imagine how they let such untrained children oversee a $4500.00 sale and not one thing has gone correctly yet or even a consistent explanation or any semblance of concern by the myriad of staff I and my wife spoke with today! And the nonsense just continues.
How do you stay in business. It is safe to say, I will never shop there again or reccomend your stores to anybody. In fact I will deter them. See you at Best Buy.
7-16-2007 @ 8:21PM
emily said...
selling 57 commen pokemon cards they are Meowth,Meditite,Squirtle,Vulpix,Skitty, Oddish,Trainer,Hoothoot,Wooper,Nidoran,Porygon,Phanpy,Koffing,Tangela, Psyduck,Brock's Vulix,Jigglypuff,Torchic,Omanyte second stage,Remoraid, Bulbasaur, Ralts,Spoink,Rattata,Slowpoke,Misty's Seel,Geodude,Dark Raticate second stage,Staryu,Torchic,Sunkern,Light Sunflower second stage,Swinub, Chikorita,Ponyta,Pikachu,Togepi,Paras,Farfetch'd,Diglett,Geodude,Pidgey,jigglypuff, Blaine's Ponyta,Horsea,Swablu,Oddish,Exeggcute,Trainer,Ponyta,Smoochum, Nidoran,Sabrina's Abra,Growlithe,Goldeen,Venonat,Nidoran,Energy,Energy each are 30 to 50 dollars each all is 1000 to 2000
selling pokemon cards 6 rare ones they are Absol,Forretress second stage,Rhydon second stage,Shelgon second stage,Ninetales second stage,Rainbow Energy,Umbreon second stage start the bid at $550 each and 20 some what rare cards they are cloyster second stage,Trainer,Lickitung,Tauros,Seaking second stage,Gloom second stage,Magikarp,Wartortle second stage,Raticte second stage,Arcanine second stage,Trainer,Kadabra second stage,Nidorina second stage,Seadra second stage,Trainer,Dewgong second stage,Trainer,Nidorino second stage,Kakuna second stage,Magma energy start the bid at 100 each at least $3300.00 for all No Class Selected $3300 403‑273‑8543
7-17-2007 @ 2:39PM
emily said...
10. selling 57 commen pokemon cards they are Meowth,Meditite,Squirtle,Vulpix,Skitty, Oddish,Trainer,Hoothoot,Wooper,Nidoran,Porygon,Phanpy,Koffing,Tangela, Psyduck,Brock's Vulix,Jigglypuff,Torchic,Omanyte second stage,Remoraid, Bulbasaur, Ralts,Spoink,Rattata,Slowpoke,Misty's Seel,Geodude,Dark Raticate second stage,Staryu,Torchic,Sunkern,Light Sunflower second stage,Swinub, Chikorita,Ponyta,Pikachu,Togepi,Paras,Farfetch'd,Diglett,Geodude,Pidgey,jigglypuff, Blaine's Ponyta,Horsea,Swablu,Oddish,Exeggcute,Trainer,Ponyta,Smoochum, Nidoran,Sabrina's Abra,Growlithe,Goldeen,Venonat,Nidoran,Energy,Energy each are 30 to 50 dollars each all is 1000 to 2000
selling pokemon cards 6 rare ones they are Absol,Forretress second stage,Rhydon second stage,Shelgon second stage,Ninetales second stage,Rainbow Energy,Umbreon second stage start the bid at $550 each and 20 some what rare cards they are cloyster second stage,Trainer,Lickitung,Tauros,Seaking second stage,Gloom second stage,Magikarp,Wartortle second stage,Raticte second stage,Arcanine second stage,Trainer,Kadabra second stage,Nidorina second stage,Seadra second stage,Trainer,Dewgong second stage,Trainer,Nidorino second stage,Kakuna second stage,Magma energy start the bid at 100 each at least $3300.00 for all No Class Selected $3300 403‑273‑8543 or we can make a deal
7-17-2007 @ 2:37PM
emily said...
or we can make a deal
9-29-2007 @ 12:08AM
sebastian said...
Well just to add my two cent's. I am a supervisor at the city. I absolutly love my job, most people dont, thats because their getting paid $6.55 an hour (In West Virginia) and have shit for a work eithic. Its hard to find someone that has a good work ethic and wants to work for $6.55 and hour. We have been trying to make the shopping experience better at CC but when you fire 3,400 people that have been there for atleast 4yrs. and go hire someone else, that has no experience, its hard for us to find someone to do their job for $6.55 an hour. Not many people know what all we deal with, and probably dont care, i dont even get paid what i should be getting paid for what i do. Like i said i love my job, i love helping people get what there looking for, and what i think will be the best product for them. I almost forgot if we would go back to commision you wouldnt have to worry about bad service. I'm sorry for those who had bad service in a CC Im trying my darnest to try my store around. Its just hard to find people with a good work ethic now a days.